At a recent campaign rally in Butler, Pennsylvania, on October 5, 2024, Elon Musk warmly embraced former President Donald Trump, highlighting their close connection as Trump prepares to establish his presidential cabinet following his electoral victory.
In the wake of the election results, Tesla’s stock saw a significant uptick, soaring by 6% on Monday, as the company regained its $1 trillion market capitalization after a nearly 30% gain last week. Analysts from Wedbush have raised their price target for Tesla shares from $300 to $400, attributing the Trump administration’s influence as a potential game-changer for Tesla’s advancements in autonomous technology and artificial intelligence over the next several years.
Musk’s fortune has experienced a remarkable boost, surpassing $300 billion since Trump’s election, reinforcing his status as the richest person in the world amidst gains across the tech and cryptocurrency sectors. His substantial investment of at least $130 million in Trump’s campaign raises questions about his potential role in policy-making within the upcoming Trump administration, though it remains uncertain whether he will hold an official position.
Regardless of his title, Musk could benefit significantly from new government contracts for his ventures, building on the $19 billion already awarded to SpaceX. Moreover, the ongoing federal scrutiny involving his companies might begin to ease as relations with the administration strengthen.
While Bank of America analysts caution that the effects of Musk’s relationship with Trump on Tesla are hard to predict, they have increased their price target for Tesla from $265 to $350. However, there is some concern about Trump’s past comments suggesting a possible overhaul of the federal electric vehicle tax credit, which has historically supported Tesla’s sales.
In a promising indication of Musk’s influence, Trump has mentioned the possibility of appointing him to oversee “government efficiency,” and the two engaged in a high-profile phone call with Ukrainian President Volodymyr Zelenskyy just two days prior.
This evolving dynamic suggests a future where Tesla could not only thrive under a Trump administration but also possibly play a critical role in shaping policies that could foster innovation in the tech industry. As the relationship between Musk and Trump continues to develop, it encourages optimism for advancement in electric vehicle technology and government support for sustainable initiatives.